Radware Ltd. Announces Q408 Results
RDWR), the leading provider of integrated application delivery solutions for
business-smart networking, today reported quarterly revenues of
for the fourth quarter of 2008. This represents an increase of 6% compared
with revenues of
of 2% compared to revenues of
Total revenues for 2008 were
with revenues of
Net loss on a GAAP basis for the fourth quarter of 2008 was
or
per diluted share in the third quarter of 2008 and to a net loss of
million
Net loss on a Non-GAAP basis for the fourth quarter of 2008 was
million
or
Net loss on a Non-GAAP basis for the fourth quarter of 2008 excludes the
impact of stock based compensation expenses of approximately
impairment of intangible assets arising from the Covelight acquisition in
of approximately
approximately
approximately
Net loss on a GAAP basis for 2008 was
share compared with a net loss of
2007.
Net loss for 2008 on a Non-GAAP basis – excluding the effects of
stock-based compensation expense, amortization and impairment of intangible
assets and acquisition related expenses, non-recurring retention expenses,
unrealized losses in severance pay funds and write-off of deferred tax
assets, was
loss of
At the end of the fourth quarter 2008, the company’s overall cash
position including cash, short-term and long-term bank deposits and
marketable securities totaled
“Despite the challenges present in today’s difficult economy, the
competitive strength of Radware’s industry leading products has enabled us to
continue to grow company revenue and achieve record sales for the fourth
quarter,” stated Roy Zisapel, CEO Radware. “We have backed this with
significant improvements made in operational efficiency to steer the company
forward profitability.”
During the quarter ended
following significant announcements:
- Radware Optimizes Global Corporate Network for HRS
- Radware Helps ibibo to Deliver Next-Generation Network in India
- Leading Korean e-Commerce Website Selects Radware to Drive Security
Excellence
- Radware Improves Nedstat's Ability to Deliver End-Users' Online
Purchasing Data to its Customers
- Radware Wins W3 Award from the International Academy of Visual Arts
- Radware Receives 2008 INTERNET TELEPHONY Excellence Award
- Radware Takes OnDemand Switch(TM) Platforms to the Next Level
Company management will host a quarterly investor conference call at
AM EDT
quarter ended
Company’s business.
The conference call will be webcast on
in the “listen only” mode via the Internet at:
http://www.radware.com/Company/InvestorRelations/default.aspx and will be
available for replay during the next 30 days.
Please use the following dial-in numbers to participate in the fourth
quarter 2008 call:
Participants in the US call: Toll Free 1-800-230-1096
International participants call: +1-612-288-0329
About Radware
Radware (NASDAQ:RDWR), the global leader in integrated application
delivery solutions, assures the full availability, maximum performance, and
complete security of business-critical applications for more than 6,000
enterprises and carriers worldwide. With APSolute(TM), Radware’s
comprehensive and award-winning suite of intelligent front end, access, and
security products, companies in every industry can drive business
productivity, improve profitability, and reduce IT operating and
infrastructure costs by making their networks “business smart”. For more
information, please visit http://www.radware.com.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally
accepted accounting principles (GAAP), Radware uses non-GAAP measures of net
income and earnings per share, which are adjustments from results based on
GAAP to exclude stock-based compensation expenses, in accordance with SFAS
123R, amortization and impairment of intangible assets and
acquisition-related expenses, non-recurring retention expenses, write-off of
deferred tax assets, one time inventory write-offs and unrealized losses in
severance pay funds. Radware’s management believes the non-GAAP financial
information provided in this release is useful to investors for the purpose
of understanding and assessing Radware’s ongoing operations. The presentation
of this non-GAAP financial information is not intended to be considered in
isolation or as a substitute for results prepared in accordance with GAAP. A
reconciliation of the non-GAAP financial measures discussed in this press
release, to the most directly comparable GAAP financial measures, is included
with the financial information contained in this press release. Management
uses both GAAP and non-GAAP information in evaluating and operating business
internally and, as such, has determined that it is important to provide this
information to investors.
This press release may contain forward-looking statements that are
subject to risks and uncertainties. Factors that could cause actual results
to differ materially from these forward-looking statements include, but are
not limited to, general business conditions in the Application Switching and
Network Security industry, changes in demand for Application Switching and
Network Security products, the timing and amount or cancellation of orders
and other risks detailed from time to time in Radware’s filings with the
Securities and Exchange Commission, including Radware’s Form 20-F.
Condensed Consolidated Balance Sheets
(U.S. Dollars in thousands)
December 31, December 31,
2007 2008
(Audited)
Current assets
Cash and cash equivalents 61,376 28,065
Short-term marketable
securities 80,498 60,731
Structured deposit 10,236 -
Trade receivables, net 17,192 13,348
Other receivables and prepaid 3,195 2,046
expenses
Inventories 5,428 6,712
177,925 110,902
Long-term investments
Long-term marketable securities 2,735 45,112
Severance pay funds 3,940 1,995
6,675 47,107
Property and equipment, net 12,217 11,693
Other assets
Intangible assets, net,
long-term deferred taxes and
other long-term assets
5,776 2,288
Goodwill 13,474 13,474
19,250 15,762
Total assets 216,067 185,464
Current liabilities
Trade payables 7,537 4,646
Deferred revenues 18,395 19,042
Other payables and accrued
expenses 8,043 9,868
33,975 33,556
Accrued severance pay 5,379 3,846
Total liabilities 39,354 37,402
Shareholders' equity
Share capital 482 465
Additional paid-in capital 176,004 185,985
Accumulated other comprehensive
income (loss) 150 (873)
Treasury stock, at cost (11,049) (17,619)
Retained earnings 11,126 (19,896)
Total shareholders' equity 176,713 148,062
Total liabilities and 216,067 185,464
shareholders' equity
Condensed Consolidated Statements of Operations
(U.S. Dollars in thousands, except share and per share data)
For the For the
Three Three
months months For the
ended ended Year ended For the Year
December December December ended December
31, 2007 31, 2008 31, 2007 31, 2008
(Unaudited) (Unaudited) (Audited)
Revenues 24,430 24,888 88,631 94,581
Cost of revenues 4,960 7,172 19,028 21,574
Gross profit 19,470 17,716 69,603 73,007
Operating expenses:
Research and 6,342 6,741 23,515 28,357
development
Selling and marketing 15,124 13,614 57,977 63,591
General and 1,888 2,328 7,114 12,066
administrative
Total operating 23,354 22,683 88,606 104,014
expenses
Operating loss (3,884) (4,967) (19,003) (31,007)
Financial income, net 2,296 519 7,420 3,612
Loss before income (1,588) (4,448) (11,583) (27,395)
taxes
Income taxes (191) (2,684) (428) (3,627)
Net loss (1,779) (7,132) (12,011) (31,022)
Basic and diluted net $ (0.09) $ (0.38) $ (0.62) $ (1.60)
loss per share
Weighted average
number of shares used
to compute basic and
diluted net loss per
share 19,533,663 18,918,438 19,477,222 19,439,776
Reconciliation of GAAP to Non-GAAP Financial Information
(U.S. Dollars in thousands, except share and per share data)
For the For the For the For the
Three Three Year ended Year ended
months months December December
ended ended 31, 2007 31, 2008
December December
31, 2007 31, 2008
GAAP Net loss (1,779) (7,132) (12,011) (31,022)
Stock-based compensation
expenses, included in:
Cost of revenues 20 26 81 103
Research and development 338 302 1,243 1,459
Selling and marketing 449 539 1,869 2,337
General and administrative 397 503 1,344 2,737
1,204 1,370 4,537 6,636
Amortization and
impairment of intangible
assets and acquisition
related expenses, included
in:
Cost of revenues 196 2,218 599 2,782
Research and development 79 - 316 -
Selling and marketing 190 39 330 156
General and administrative (8) - - -
Income taxes 40 41 135 163
497 2,298 1,380 3,101
Write-off of deferred tax
assets - 2,600 - 2,600
Non recurring retention
expenses,
included in General and
Administrative - - - 2,231
Unrealized losses in
severance pay funds,
included in:
Research and development - 303 - 303
Selling and marketing - 63 - 63
General and administrative - 55 - 55
- 421 - 421
One-time inventory
write-off - - 1,200 -
Non-GAAP net loss (78) (443) (4,894) (16,033)
Non-GAAP diluted net loss
per share $ - $ (0.02) $ (0.25) $ (0.82)
Weighted average number of
shares used to compute
Non-GAAP diluted net loss
per share 19,533,663 18,918,438 19,477,222 19,439,776
CONTACTS
Chief Financial Officer
Meir Moshe
+972-3766-8610
Corporate Communications
Joyce Anne Shulman
+1-201-785-3209
joyceannes@radware.com
SOURCE Radware Ltd